{"id":543104,"date":"2022-01-09T13:43:18","date_gmt":"2022-01-09T13:43:18","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2022\/01\/09\/ma-kept-booming-in-2021-and-is-poised-to-keep-going-this-year\/"},"modified":"2022-01-09T13:43:18","modified_gmt":"2022-01-09T13:43:18","slug":"ma-kept-booming-in-2021-and-is-poised-to-keep-going-this-year","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2022\/01\/09\/ma-kept-booming-in-2021-and-is-poised-to-keep-going-this-year\/","title":{"rendered":"M&#038;A kept booming in 2021 \u2014 and is poised to keep going this year"},"content":{"rendered":"<p><a class=\"content-anchor\" id=\"tldr-story-05\"><\/a> <strong>2021 was a boom year for global M&A:<\/strong> A record M&A rally saw agreements worth USD 5.8 tn signed throughout the year, growing 64% y-o-y and marking the fastest pace of growth for M&As since the mid-1990s, the <a href=\"https:\/\/www.ft.com\/content\/6dfdd78a-e229-4524-a400-144396524eb6\">Financial Times<\/a> reports, citing Refinitiv data.<\/p>\n<p><strong>Underpinning the rally:<\/strong> Booming markets, widespread stimulus measures, and the growing popularity of SPACs. A total of 334 SPAC agreements were announced for companies valued at a combined USD 597 bn, equivalent to 10% of the total figure by value, according to the salmon-colored paper. SPACs began to slow down towards the end of 2021 after being \u201coverdone,\u201d and will likely account for a much smaller percentage moving forward, JPMorgan\u2019s global co-head of M&A told the FT.<\/p>\n<p><strong>The two biggest M&As of the year:<\/strong> The <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/72333215-7e7e-44e4-9b0a-416a7305f71f\">USD 132 bn merger<\/a> of WarnerMedia and Discovery, which saw telecom operator AT&T spinning off WarnerMedia to create a USD 43 bn media giant with Discovery. Canadian Pacific Railway\u2019s USD 31 bn acquisition of rival Kansas City Southern, which <a href=\"https:\/\/www.ctvnews.ca\/business\/canadian-pacific-closes-us-31-billion-kansas-city-southern-acquisition-deal-1.5707272\">closed last month<\/a>, led to the creation of the only single-line railway linking Canada, the United States and Mexico.<\/p>\n<p><strong>There were already signs of the boom earlier on in the year:<\/strong> In <a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-01-24\/why-dealmakers-expect-tech-m-a-to-keep-up-its-red-hot-run?srnd=premium-middle-east&sref=mmeFTDW1\">January<\/a>, advisers signaled their expectations that the 2020 tech M&A boom would hold up in 2021, predicting enterprise technology companies with market values in the range of USD 20-100 bn to look at acquisitions. The forecast was fueled by surging M&A volumes in 2020, which hit a record USD 470 bn as surging tech stocks and central bank liquidity provoked a wave of market concentration. And by the end of 3Q2021, it was clear that the boom was materializing. Nearly USD 4 tn-worth of M&A agreements were reached by <a href=\"https:\/\/www.ft.com\/content\/4b955a75-55a4-4e13-b785-638b88bbfb0b\">September<\/a>, helped in part by a surge in agreements in August, which is typically a quiet month for M&A.<\/p>\n<p><strong>Egypt was no exception:<\/strong> M&A also had a strong year here at home, we noted in our <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/db1dc8a7-f010-4c1e-a656-a4b11bb806fa\">year in review story<\/a>. SPACs are widely expected to be a driver of further activity this year, after being <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/80afa0e7-4979-4b92-b94d-54ed3e60f9ea\">recently introduced<\/a> as a financial vehicle to the local market. At the moment, SWVL is attempting to speed up a SPAC agreement that could be <a href=\"https:\/\/enterprise.news\/egypt\/en\/news\/story\/bcfb262f-b3a9-4a65-85f7-ae377d713cfd\">completed in the coming weeks<\/a> to beat Anghami in taking the title of the first firm to SPAC in MENA.<\/p>\n<p><strong>Could we see more of the same this year?<\/strong> Altogether, the expectation is that there will continue to be a flurry of M&A activity in 2022, despite anticipated interest rate hikes from the US Federal Reserve and rising company valuations potentially slowing down the pace. A Grant Thornton survey showed that more than two thirds of dealmakers and advisers expect M&A volumes to rise this year \u201cdespite challenges posed by regulations and the pandemic,\u201d according to <a href=\"https:\/\/www.reuters.com\/markets\/us\/global-ma-volumes-hit-record-high-2021-breach-5-trillion-first-time-2021-12-31\/\">Reuters<\/a>. Businesses are likely to bite the bullet on higher valuations \u201cbecause they need to remain on the offense with the competition, they have access to record amounts of [liquidity], and they feel pressure from investors to raise their own valuations,\u201d a separate KPMG survey of US business leaders signaled.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>2021 was a boom year for global M&#038;A: A record M&#038;A rally saw agreements worth USD 5.8 tn signed throughout the year, growing 64% y-o-y and marking the fastest pace of growth for M&#038;As since the mid-1990s, the Financial Times reports, citing Refinitiv data. Underpinning the rally: Booming markets, widespread stimulus measures, and the growing [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":543105,"comment_status":"closed","ping_status":"open","sticky":false,"template":"single-feature.php","format":"standard","meta":{"_acf_changed":false,"newspack_ads_suppress_ads":false,"newspack_popups_has_disabled_popups":false,"newspack_sponsor_sponsorship_scope":"","newspack_sponsor_native_byline_display":"inherit","newspack_sponsor_native_category_display":"inherit","newspack_sponsor_underwriter_style":"inherit","newspack_sponsor_underwriter_placement":"inherit","ep_exclude_from_search":false,"_primary_brand":0,"newspack_featured_image_position":"","newspack_post_subtitle":"","newspack_article_summary_title":"Overview:","newspack_article_summary":"","newspack_hide_updated_date":false,"newspack_show_updated_date":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[7250],"tags":[633,349,7128,643,439,388],"brand":[],"newspack_spnsrs_tax":[],"class_list":["post-543104","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-macro-picture","tag-enterprisepm","tag-interest-rates","tag-ma-watch","tag-macro-picture","tag-spacs","tag-us-federal-reserve","wpautop","entry"],"acf":{"mongo_id":"93e10135-c31f-4942-8d1d-4d7e9278bcdb","is_powered_by":true,"story_type":"1","photo_url":"https:\/\/ent.news\/2022\/1\/409.jpg","photo_position":"above","related_issue":[543095],"teaser":"","voice_url":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.1 (Yoast SEO v27.1.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>M&amp;A kept booming in 2021 \u2014 and is poised to keep going this year - EnterpriseAM Egypt<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/enterpriseam.com\/egypt\/2022\/01\/09\/ma-kept-booming-in-2021-and-is-poised-to-keep-going-this-year\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"M&amp;A kept booming in 2021 \u2014 and is poised to keep going this year\" \/>\n<meta property=\"og:description\" content=\"2021 was a boom year for global M&amp;A: A record M&amp;A rally saw agreements worth USD 5.8 tn signed throughout the year, growing 64% y-o-y and marking the fastest pace of growth for M&amp;As since the mid-1990s, the Financial Times reports, citing Refinitiv data. 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